What Your Captive Manager Doesn t Know HCIC Forum 2013
David J. Kahaulelio President Queen s Insurance Exchange, Inc. Mr. Kahaulelio has served as President of Queen s captive insurance company since August 2000 and as Vice President Risk Management of The Queen s Health Systems since November 2000. He directs Queen s Health Systems activities which affect risks of loss, manages insurance and reinsurance acquisition and pricing, administers risk finance and transfer programs including workers compensation and captive insurance programs including all claims management activities. Mr. Kahaulelio joined Queen s in November 1997 as Manager of Employee Safety and Workers Compensation. He has over 35 years experience in insurance claims and sales, having held management positions at regional and national insurance companies. He attended the University of Hawaii. He is President and Director of the Hawaii Chapter of Risk and Insurance Management Society, Inc. (RIMS) and is a member of the American Society of Healthcare Risk Management (ASHRM). Mr. Kahaulelio has been active with Hawaii Captive Insurance Council (HCIC) and served previously as its past Chairman of the Board.
Ward Ching Vice President, Risk Management Operations Safeway Inc. Ward Ching is Vice President, Risk Management Operations at Safeway Inc. located in Pleasanton, California. His responsibilities include Enterprise Risk Management, Integrated Risk Finance, Hazard Loss Control, Environmental Compliance, Property Risk Control/Engineering and a variety of retail, distribution, and manufacturing risk management initiatives, including Safeway s Culture of Safety. Prior to joining Safeway, Mr. Ching was a Principal at Towers Perrin and a Managing Director at Marsh. Mr. Ching completed his undergraduate and graduate degrees in International Relations and Economics at the University of Southern California and has taught and written extensively on the subjects of International Relations, Game Theoretic Applications in Foreign Policy and Enterprise Risk Management. Mr. Ching has been a member of the Hawaii Captive Insurance Council since its inception and wasalsoinvolvedintheformationofhawaiiasanon shore captive domicile. Mr. Ching has been an organizer or consultant to a large number of captives now domiciled on shore, redomesticated as admitted carriers, or continue off shore inbermudaandcayman.
Michael S. Owens Senior Director, Insurance Finance / Risk Management Marriott International Mr. Owens is the Senior Director, Insurance Finance in the Risk Management Department at Marriott International in Washington, DC. Marriott is a worldwide hospitality company with $13 billion dollars in sales across 3,800 operating units in the United States and 75 other countries and territories. Marriott s Risk Management Department is responsible for coordinating insurance coverage for Marriott operations, providing claims administration services, overseeing Loss Prevention and Fire Protection activities and coordinating contingency planning activities. Mike Owens is responsible for overseeing all Risk Management finance and systems activity, including oversight of two captive insurance companies in Hawaii. He has worked at Marriott since 1984. Mike is a Graduate of Loyola College in Baltimore, MD, with a Master s degree in Finance and a bachelor s degree in Business Administration. He holds certifications as a CPA, CIA, and CISA. He lives in Columbia, MD with his wife and four children.
Jason Flaxbeard, CPCU, ACA Senior Managing Director Beecher Carlson Jason leads the Beecher Carlson captive/alternative risk transfer operations throughout the US, Bermuda and Cayman Islands. Beecher Carlson is one of the world s largest captive managers, known for its innovative approach in today s industry. Jason has over 15 years of experience in the captive insurance industry and over 20 years in the accounting industry. Jason also managed Beecher Carlson s Hawaii office. In 2006, Jason was moved to Denver to run all of Beecher Carlson s captive operations, consisting of over 100 captives, including many Fortune 100 companies. He has extensive experience with all lines of business. Jason is a graduate of Bath University, England, where he earned a Bachelor of Science degree in Economics. He is also an English Chartered Accountant and a Chartered Property and Casualty Underwriter. Jason is a board member and frequent speaker at CICA and has spoken at VCIA, HCIC, RIMS and other trade conferences.
Overall objectives of the session: What should a captive manager do for a program to be successful? What do clients expect from captive managers? What do managers expect from clients? How do captive managers add value?
All captive presentations should be moderated by someone with a British accent?
Can you pronounce aloud the last name of our esteemed panelist Dave Kh Kahaulelio? lli? 5 5
Questions for the panel:
What is the most important thing your captive manager does for you or your program?
What are the most important things you look for when selecting a captive manager. Are they simply commodities, so the best price wins?
Captive managers spend 10 of their time on captive management (risk, operational, insurance). Clients do the same correct?
When FASB issues accounting guidance, this is of intense interest to the panel (managers should be on the front end of changes in accounting principles and the impact on clients).
When investment managers call a captive manager with products designed to improve captive returns, this is the most important item on a risk manager's desk.
Captive owners always want to hear about Solvency II and the NAIC and how these regulatory lt bodies affect their captive, correct?
A captive manager's principal goal in life is to ensure the tax efficacy of the captive.
A captive manager is the best person to read, understand and translate: i. actuarial reports ii. investment manager statements iii. state tax law
It isn't a captive manager's job to bring a captive owner creative ideas on a captive it is merely their job bto prepare financials i and assist with regulatory matters? Creative ideas come from brokers.
What is the expectation for the manager to interact with other service providers? A. Recommend B. Interact C. Oversee C.
All risk managers are interested in: i. Other domicile regulations ii. Domicile il examination procedures iii. Where the word "captive" came from
All managers will say that they are not tax advisors and do not offer investment or legal advice; di however, all managers should ldbe able to navigate these areas.
All managers should ldknow about ttax structure of the parent.
All managers should know about NRRA.
All managers should know about renewal of TRIA.
All managers should know about policy/coverage wording.
Can you name the added value that your captive manager brings to the RM department?
A RM's first call in the morning is to the captive manager. Risk financing is more important tthan risk ikmitigation and comes before all else.
A captive's structure is to be continually challenged and a captive manager's role is to pick ikitit apart and offer something that t isn't naturally visible to someone not immersed in the business.
Captive managers have no say on what sorts of changes regulators make and merely act within therules ofa domicile (mostassociations / regulators work directly with managers to understand where theimprovements should be and what is "cutting edge").
A captive manager located in one domicile only knows about that domicile.
Captive management firms don't have any controls over the financial and regulatory reporting services they provide that's t' external audit's job.
Captive managers are only expected to understand the insurance program at the level ofthecaptive captive. It isn't importantthattheyare that they are aware of the risks and business issues facing the parent company, the structure t of the complete lt insurance program in place to mitigate those risks, and how the captive fits in.
This presentation has gone on long enough and everyone wants to go to the bar?